TAX AMNESTY

General
Communiqué (Serial No: 4) of the Law on Restructuring of Certain Receivables (“General Communiqué (Serial No. 4)”)
entered into force with the publication of the Official Gazette dated
02.12.2016 and numbered 29906.

General
Communiqué (Serial No:4) clarifies the matters mentioned in Article 7 of the
Law on Restructuring of Certain Receivables (“Law No. 6736”). As per Article 2 of the General Communiqué (Serial
No:4) any money, gold, foreign exchange, instrument and other capital market
instruments will be disposed freely, regardless of their acquisition date,
provided that they are brought to Turkey as of 31.12.2016. Other assets brought
which are not defined under the mentioned article, such as immovable, can also
be brought to Turkey by converting them into the mentioned assets. There will
not be any taxation for the said assets within the scope of the Law No. 6736.

Furthermore,
money, gold, foreign exchange, instrument and other capital market instruments shall
be transferred to banks or financial intermediaries in Turkey via a new or
existing bank account or will be brought to Turkey physically. It should be
emphasised that, declaration of instruments and other capital market
instruments shall be sufficient in order to bring these assets and to benefit
from the advantages of the Law No. 6736. It should be noted that the physical
transfer of the mentioned assets is regulated as discretionary. The banks or
financial intermediaries are required to preserve these declarations and cannot
open an account for them or follow them up. Real persons and legal entities shall
use certificated documents obtained from the relevant institutions or
organizations for the declaration of such assets.

According
to Article 2/11 of the General Communiqué (Serial No. 4), the assets of the
companies which are registered in the name of the legal representatives, shareholders
or attorneys, but originally belong to the companies, shall also be brought to Turkey
within the scope of the said article. In this regard, companies may also bring
their assets which have been evaluated abroad via their legal representatives,
shareholders or attorneys (provided that there is a power of attorney or
representation agreement issued before 19.08.2016 by the authorised
institutions) to Turkey. The assets that will be transferred to a new account
or an existing account registered in the name of the company, shall be deemed
as “assets brought to Turkey” by the company.

The
institutions and organizations may not conduct an investigation regarding the
acquisition or valuation of such assets that took place abroad and cannot request
any documents other than the annexed form of the General Communiqué (Serial No.
4) and its exhibits.

Besides,
the evaluation criterion of “assets brought to Turkey from abroad” is regulated
under Article 3 of the General Communiqué (Serial No. 4).

Last
but not least, no inspections, tax penalties, administrative penalties, tax
audits or tax assessments shall be conducted for the assets brought to Turkey
within the scope of the Law No. 6736. It should be further noted that, neither
retroactive tax audits nor tax assessments shall be conducted for the assets
brought to Turkey in this respect, within the scope of any legislation. In this
regard, for example incomes and earnings obtained in the past, including the incomes
and earnings obtained abroad until the end of 2016, and the sources of such shall
not be audited or assessed.